The council has bought the Rochdale Central Retail Park and a neighbouring 4.7-acre plot next to the railway station from property investor Town Centre Securities.

The 70,000 sq ft park next to the town’s railway station includes tenants Argos, Halfords, Matalan, and Poundstretcher, all of which are on relatively short leases. The park generates an annual net rent of £1.15m with average rents at £16.50/sq ft.

TCS’ unconditional sale is set to complete on 4 January next year and the proceeds will initially be used by the company to reduce debt. The sale is part of TCS’ move away from retail and leisure, which has seen the company reduce its portfolio from 70% retail to 55%.

On completion of the sale of the park, TCS will further reduce its retail and leisure portfolio to 52%. As of 30 June 2018, the combined site was valued at £14m, meaning the council paid circa £800,000 under the valued price.

Edward Ziff, chairman and chief executive of TCS, said: “This disposal is in line with our on-going strategy of repositioning TCS’s portfolio; reducing our exposure to mature out-of-town retail, and enabling further diversification of our assets and investment in our development and investment pipeline.

“Despite making significant improvements to the retail park in recent years we identified this asset as having further downside potential. This sale removes that risk whilst at the same time having the benefit of lowering debt and giving further headroom for future investments.

“Our recent sales and purchase activity reflect our strategy of investing in assets that offer the ability to create value and income through intensive asset management. We continue to concentrate our, now smaller, retail portfolio by targeting good value prime assets or supermarket and convenience retail. We see this approach as being key to generating long term growth and taking advantage of the tough retail environment.”

Your Comments

I wonder what Rochdale council will be doing with it? Seems like a lot of money for an “Asset” which someones else wants to get rid of….and unconditionally?? I hope Rochdale know what they are doing!! If bought for houses at 30 units per Acre that’s 141 units, seems a ridiculous amount of money for the site in its location……I think that’s a loss leader…..

Great bit of business for Rochdale in the long term. With the regeneration of the town continuing and a high speed East to West rail link coming in the next two decades this will turn out to be an acute piece of purchasing.

It would be fantastic if the Rochdale Branch Canal could be reopened, and the basin re-excavated (filled in during the 1960s) as the centrepiece of the regeneration of this area. The railway bridge over the canal at the east end of Rochdale station still exists, although a few light industrial units south of the railway would have to be re-located,

Mental….As I said below…and now this..I must have Crystal Ball – Confirmed that Rochdale are seeking Housing on the site 150 units.

Are Rochdale Mad? That Circa £88,000 per plot for the land (Based on 13.2M)……….”Putting your money where your mouth is” is one one thing, paying way over the odds for land is another…..I would love to see the appraisal that got signed off on that one!!